Baazar Style Retail Ltd (NSE: STYLEBAAZA) Q3 2025 Earnings Call dated Jan. 29, 2025
Corporate Participants:
Shreyans Surana — Managing Director
Nitin Singhania — Chief Financial Officer
Analysts:
Suyash Samant — Analyst
Gaurav Jogani — Analyst
Devesh Advani — Analyst
Pranav Shrimal — Analyst
Palash Kawale — Analyst
Tanmay Gupta — Analyst
Bhavik Narang — Analyst
Chintan Shah — Analyst
Naitik Mutha — Analyst
Arman — Analyst
Shreyans Jain — Analyst
Aayush Saboo — Analyst
Tanish Tolani — Individual Investor
Kushal Goenka — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Bazaar Style Retail Ltd. Q3 and 9 month FY25 earnings conference call. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Suhyash Samanth from Stellar IR Advisors. Thank you. And over to you, sir.
Suyash Samant — Analyst
Good evening everyone and thank you for joining us today. I have with us today the senior management team of Bazaar Style Retail Ltd. Mr. Srianth Sorana, Managing Director and Mr. Nitin Singhanya, Chief Financial Officer who will represent Bazaar Style Retail Ltd. On the call. The management will be sharing operating and financial highlights for the quarter and nine months ended December 31, 2024 followed by a question and answer session. Please note this call may contain some of the forward looking statements which are completely based upon the company beliefs, opinions and expectations. As of today, these statements are not a guarantee of the company’s future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward looking statement to reflect developments that occur after a statement is made. I now hand over the conference to Mr. Srianth Surana. Thank you. And over to you, Sir.
Shreyans Surana — Managing Director
Good evening everyone. Welcome to our Q3 and 9 months FY25 earning calls. Our presentation has been uploaded on the Exchange and the company’s website and I hope you had a chance to go through it. I am happy to report our revenue growth of 24% year on year to rupees 4116 million in Q3FY25 and 33% year on year to Rs. 9983 million in nine months FY25 the SSG saw a growth of 10% in nine months FY25. However, we have registered a degrowth of minus 3% in Q3FY25. The reason behind this muted SSG growth in Q3FY25 was that in the previous quarter that was Q2FY25 we saw a boost in growth due to a favorable festival demand particularly driven by the earlier timing of Durga Puja this year which was advanced by 11 days. This sector contributed to our Q2 performance. As a result, Q3FY25 appears subdued in comparison to the same period last year which also had the benefit of festival driven demand. As a significant portion of our L2S stores are located in the states of West Bengal, Assam and Tripura where sales are heavily influenced by the Durga Puja season. The SSG in this region was impacted for Q3. However, for the nine month period ended 12-31-2024, this state showed positive growth. In contrast, our stores in other regions performed strongly with the positive SSG growth in both Q3, FY25 and 9 month period ended. It is important to note that the local festival can cause some fluctuations in performance on a quarterly basis, but we remain confident in our overall growth trajectory. Despite the strong. Short term variation. Our performance on a yearly basis is aligned with our guidance and strategic plans. Coming to the Financials I want to start by talking about the quarter gone by. So in Q3FY25 we saw a healthy top line growth of 24% year on year and 32% quarter on quarter to rupees 4116 million. Our gross profit increased by 25% year on year and by 69% quarter on quarter to rupees 15. 53 million. Our EBITDA was up 10% year on year and 242% quarter on quarter to rupees 833 million and our reported profit after tax was at rupees 304 million. Coming to the nine month performance we witnessed a robust growth of 33% in the top line to rupees 9983 million. Our gross profit grew by 34% year on year to rupees 3381 million and EBITDA grew by 26% year on year to rupees 1497 million. The profit after tax to date rupees 211 million. As you know, we report our performance in accordance with the Indian Accounting standard due to regulatory requirement. However, Pre Indas provides a clearer and more accurate representation of our expenses. We recommend assessing our financial performance on a 9 month basis or at trading 12 month basis rather than quarterly basis as our regional nature may cause volatility in quarterly primarily due to the significant influence of festive timing. We are currently in an accelerated growth phase with a strong focus on expanding our strong store footprint. As you know, we have opened 43 new stores in nine months of this financial year. It’s important to highlight that new store takes time to reach their full potential which can impact our operating margins. In the first year we typically expect new stores to generate around 5% operating margins in the second year 8 to 10% and by the third year it’s 14 to 16% at pre index levels. That said, our new stores have been performing better than expected at the operating level this year. However, at the entity levels the corporate overheads have increased by 0.85% from last year majorly due to the capacity expansion of warehouse office expansion and increased manpower in the field of procurement, supply chain operation and technology. Considering the future growth, these costs are expected to be a better absorbed as we scale and drive higher revenue going forward. In addition, our portfolio of mature store continues to grow. We anticipate stronger opening operating leverage which should lead to improved margin expansion. Internally we have set an absolute number target for EBITDA and I am pleased to report that we are on track to meet those goals. As we move forward. I would like to highlight our pre index financials. Our EBITDA for nine months FY25 stood at rupees 8,127 million up by 23%. Year on year we are on track to close the financial. Financial year with an ebitda of around rupees 950 to 980 million. We continue to remain a growth oriented company while focusing on sustainable and healthy EBITDA growth. Coming to the Operational Performance In Q3FY25 the total number of bills stood at 4.26 million taking the nine month FY25 total to 10.67 million which is up by 39% year on year in nine month FY25. In Q3FY25 the total quantities sold stood at 13.04 million taking the total to 35.29 million up 36% year on year in nine monthFY25. In Q3FY25, the same store sale growth stood at minus 3% and 10% in nine months FY25 versus 5% in nine month FY24. In Q3FY25 the ATV stood at 1031 and 998 in nine month FY25. In q3FY25 sales bus graphics stood at 826 and rupees 737 per month up 9% in nine month FY25. Year on year private level contribution was at 38% in Q3FY25 versus 35 in Q3FY24 and 44% in nine month FY25 versus 37% in nine months FY24. Our inventory per square feet has reduced by 200 square feet from last year. The demand landscape remains strong and we are optimistic about upcoming quarter. With the wedding season and the EID approaching, we expect a strong performance in Q4FY25. Our commitment to our growth strategy continues to deliver results with a net addition of 37 new stores in the first nine months of FY25. We have opened 18 new stores and closed three stores during Q3 FY25. As of 12-31-2024 we operate a total of 199 stores with a total area of 17.89 lakh square feet. With this expansion we are on track to exceed our original guidance of 35 net stores addition for FY25. We now expect to add between 45 to 50 stores by the end of this fiscal year, further strengthening our footprint and position positioning us for continued growth in the light of 33% year on year top line growth reported for the first nine months of FY25 we are revising our full year guidance to 30% growth from 25% for FY25. As mentioned previously, consumers are increasingly moving towards organized channel. This trend is proving to be a key tailwind for our business as consumer preference continues to evolve. With a stronger focus on brand consciousness at affordable pricing, we aim to expand store count further through deeper penetration in core market and forming new clusters in focus market. We are confident that our strategy will continue to drive long term value and we look forward to delivering strong results in the upcoming quarters. With this, I request the moderator to open the call for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star one on the Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press Star and two participants are requested. To use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Gaurav Jogani from GM Financial. Please go ahead.
Gaurav Jogani
Thank you for taking my question. Since my first question, you know is with regards to the profitability performance on the pre index side especially in evening for Q3. So I mean if we look at, you know, despite the strong top line growth on a Q3 basis still we are, you know, not grown much on the profitability side on PBT front also on a pre index. So what would you allude this to? How will we overcome, you know, so despite driving the stop top line growth that is not translating to the profitability growth.
Shreyans Surana
Thank you for the question. So in that way, because as I already mentioned that there was a preponement of 11 days of Durga Puja. So effectively the first half became much stronger. So if you see over the first six performance against 11 crores pre Indus EBITDA we registered a bit of around 26 crores. So the profitable the major profitability of October shifted to September this year. That is the reason that Q3 numbers are subdued because of the shift of puja by 11 days.
Gaurav Jogani
Yes, but you know, so even if we consider, you know, Q2 Q3 together, I mean Q2 I think we registered a pat loss if I’m not wrong, on a pre index basis and Q3 also the profitability was, you know, down the pat basis on a y oi basis. So even considering the Q2 Q3 performance together, don’t you think, you know, the profitability could have been even better versus what you have seen right now.
Shreyans Surana
So at the store level we are doing better in profitability. If you see at a nine month, as I said, you have to see for the full nine months. So at the store level we are doing much better. So our performance has been improved in the store level. Basically the major reason is the increase in cost side on the corporate overhead which has increased by around 0.85% as I mentioned during the commentary. And that is majorly because of the expansion that we are doing and also that we are doubling the capacity at warehouse. So last year the warehouse size was around 86,000 which we have doubled this year we have increased our office space, we are increasing the manpower so that key we can sustain the future growth at the store level. Last year it was 14.08 which is 14.22 in spite opening 46 stores which have also resulted in increase in expenses. Still the at the store level paid in EBITDA is higher than last year by 15 basis point.
Gaurav Jogani
So shed, if you can give us this metric, what would be your X of the corporate overheads? What Would be your store level profitability on a company wide basis.
Shreyans Surana
So for the first nine months it is around 14.23% against 14.08% last year. Nine months for the first, for the full nine months.
Gaurav Jogani
Okay, so this, sorry, you’re seeing something
Shreyans Surana
Including new stores.
Gaurav Jogani
So the absolute, if I consider the absolute profitability, I mean in that sense and if you can give the absolute corporate overheads number that would help us to better appreciate the cost increase because then what will happen is as you increase the store count etc and hopefully these corporate overheads will not increase in the same phase and that could translate to better profitability.
Shreyans Surana
So approximately 60 crore, 66, around 60 to 65 crore has been the office the corporate overheads for the first nine months against which last year it was around 40 to 45 crores.
Gaurav Jogani
Okay, so there’s approximately 20 crores out of 20 to 50. 15 to 20 crores. I would say incrementally or because of the company. Right?
Shreyans Surana
Correct, correct.
Gaurav Jogani
Okay. And Ashin, the second question, you know, is with regards to the choice between, you know, growing aggressively in terms of store expansion versus profitability, what would you, you know, prefer in terms of the strategy? Would you still, you know, continue this aggressive tour of expansion or would you, you know, would focus now on stabilizing the existing stores, taking them ahead and focusing on profitability. What would be a choice as a strategy as a company you would like to follow.
Shreyans Surana
So I believe in this today as we are growing, we are seeing a good amount of profitability is that we are able to create at store level. So till the time we are able to create profitability at store level, I think we can go with the growth studies that we have done. And as a company we have a very balanced approach in terms of growth strategy. We would like to grow ourselves between 25 to 30% in terms of revenue with an L2L growth around 8 to 10% I think which is a very balanced strategy and it’s more sustainable and profitable from the organizational perspective.
Gaurav Jogani
Sure. And lastly, if you can help us, you know, give us some balance sheet side numbers. I mean if you can help us, what would is the working capital days or the inventory days right now at the end of Q3? And what would be the cash balance or the net debt levels that you would have
Shreyans Surana
In terms of inventory? We have reduced our inventory by 200 rupees square feet from last year. So we were at 2300 rupees square feet inventory 9 month FY24 which is around 2100 rupees of square feet as on 9 month FY24.
Gaurav Jogani
Sure. And the balance in terms of cash or net debt.
Shreyans Surana
So net debt is 100cr bank borrowings is 100. Year and bill acceptance is 16cr. Total debt in books is 116cr and cash and bank balance is 14.63.
Gaurav Jogani
So there is a gross net debt I would say is around 100 crores. Right,
Shreyans Surana
Right.
Gaurav Jogani
Okay. And but you know, post the fundraiser, you know we had paid off the debt largely. So this incremental debt that you would allude to would largely be for store expansions or what would it be related to?
Shreyans Surana
So it’s a mix of everything because we have reduced the debt once we receive the fund from ipo. So majorly the store expansion and along with that the. The insurance payment that is still to be received so largely on that account also this debt has been increased.
Gaurav Jogani
Okay. Okay. So I’m assuming you see 43 stores and approximately 2 crore per store including the working director capital requirement that you would have would mean you know, 85, 86 crores out of this number. But you know, given that your inventory has gone down, wouldn’t that should help some release and therefore the cash balance should have been better. Or, or we are just considering the 43 odd stores. But there is also some capex gone towards the future stores plus the, the warehouse expense also.
Shreyans Surana
Yeah, so basically the there, there’s been a capex involved in the warehouse also. And you likely said there are a lot of stores which are in line quarter also. So mix of both majorly on account of the payment. As I said, the insurance payment is still about to. We have not received as of now. So that is also created a little bit of higher bank limit utilization.
Gaurav Jogani
Okay. Okay. Thank you. And that’s all for.
Shreyans Surana
Thank you.
Operator
Thank you. Next question is from the line of Devesh Advani from Reliance General Insurance. Please proceed.
Devesh Advani
Am I audible?
Shreyans Surana
Yeah, you’re audible.
Devesh Advani
Sir. There is a degrowth in SSG in this quarter of 3%. So what has led to that degrowth? And one more thing is that there is a fat decline. So as far as I can see there is an other income which has declined. So what is what, what is there in other income? What. What are the contents there? And other income that has declined. So in terms of ssg, as I said, because we are highly considered in Assam and Bengal, it has led to a minus 3% dip if I have to break. West Bengal, Assam Tripura and other rest of the states. The rest of the states saw a healthy SSG growth of around 7.25% for this quarter. So it was majorly on the account of West Bengal, Assam tripura that the Q3SSG was at Diploma on the yield or for the full line. But if you see so Bengal, Assam, tripura stood the 10.72% in terms of SSG and rest of states. Stood at 9.83% for the nine months to put together is 10.4%. And as far as profitability is concerned, what has led to decline?
Nitin Singhania
So if you see other income last year in the December quarter we have purchased three stores. So approximately 5 crore was the profit on modification of lease because of the ROU reversal as per India’s 116. So that has led to a decline in the other income this year.
Shreyans Surana
That is why we are saying pre India’s numbers represent better expenses and numbers in terms of understanding the retail
Nitin Singhania
Like what is the guidance as far as profits are concerned that you will maintain going further.
Shreyans Surana
So if you see we have already reached 84 crores of EBITDA including other income and for this year I think in terms of free industry EBITDA we would be at around 95 to 98 crores as I already mentioned. And on the guidance on the EBITDA margin will be between 7 to 8% and on the pad side it will be between 3 and a half to 4%. 3 to 4%. Sorry, 3 to 4%. Yeah.
Nitin Singhania
This is for FY25 or for 26.
Shreyans Surana
FY25.
Nitin Singhania
Any anything for FY26
Shreyans Surana
I think. See in terms of number I cannot comment on the future numbers but you can expect that every year we are increasing. So at the end our target is to reach around 5% as a pet margin. I have told in earlier calls also. So that is the target that we would like to reach in next couple of years. Means in at least in next five to six quarters
Nitin Singhania
The apparel is taking a shift. That means they are rising and general merchandise is declining. How about private labels? So what is the margin combination that you get as far as private labels and apartments?
Shreyans Surana
So in terms of private label this year we have done a sale of around 44 for private labels against which 33% against which.5% has been the higher margin that we are earning on private label. But as a strategy, because we want to expand our footprint in all the areas and expand our private label brands in all the areas as a strategy we are going for an aggressive pricing that is we are not increasing margin at a very high bips in the private label category so that we can increase the market share of private label. Maybe in near future we can increase the margins also.
Nitin Singhania
And how about apparel?
Shreyans Surana
So in terms of Apple, over 87% of our revenue this year has come from apparel and 13% from general merchandise.
Nitin Singhania
Are the margins in these categories
Shreyans Surana
On an average approximately we can say that the margins will be on the similar line. General merchandise category has a lower margin of around 30 to 31% whereas April carrier higher margins.
Nitin Singhania
Thank you.
Operator
Thank you. Next question is from the line of Pranav Shrimal from Pink Wealth Advisors. Please go ahead. Hello, Mr. Pranav, please go ahead with your question. You are audible.
Pranav Shrimal
Yeah. Thank you for the opportunity and congrats on the top number as well. I just had a couple of questions. Can I move mature store SSG and the new store ssg?
Shreyans Surana
So basically the SSG stores are only mature stores. The stores which are older than 18 months comes under the SSG category and comes as a mature store. So the 10.4% 9 months SSG is for those mature stores which is currently around 133 stores are in this category order 199.
Pranav Shrimal
Okay. So the new stores are not included in this number.
Shreyans Surana
No, in the SSG number because they don’t have any base of last year now.
Pranav Shrimal
Got it, Got it. And the sales that we do on in apparel and merchandising. Can I know what percentage of the sales would be? Full price sales.
Shreyans Surana
Can you just come again? I’m not able to hear the last words.
Pranav Shrimal
Yeah, can I know the percentage of full price sales that we have done?
Nitin Singhania
90%. Is the full price sale through
Shreyans Surana
For the first nine months.
Nitin Singhania
For the first this year?
Pranav Shrimal
For the first nine months? Yes. Hello.
Shreyans Surana
Hello.
Pranav Shrimal
Yes sir,
Nitin Singhania
It is 90% in the first nine months for this year.
Pranav Shrimal
90% at a gross level, correct?
Shreyans Surana
Yeah, the full price sales.
Pranav Shrimal
Got it. And what will be your inventory turnover, sir?
Nitin Singhania
So inventory as on date is 112 days.
Pranav Shrimal
And just one question. Our net debt as I said stands at around 100 cross.
Shreyans Surana
Yes.
Pranav Shrimal
So for the expansion have you taken up any more debt? Because our interest payment has been pretty consistent quarter on quarter.
Shreyans Surana
So we have not taken any debt on that part as of now. As I said, there was a fire incident in the Q1 against which the we are awaiting the payment coming from the insurance company. As a result, the larger part of the debt is used on the payment which we have already done to the vendors which were affected during the fire time in the Q1. So around 48 crore is the expectation amount from the insurance company which is due as of now. So that fund is also utilized in this limit.
Nitin Singhania
So to add on to Sanji point this year the interest cost is 1.06% visa vis 1.23 last year. And secondly if you see quarter on quarter this year in Q2 it was 4.43 which has reduced to 1.6 crore. So there is an average costing of 55 lakhs per month for this quarter visa vis 1.25 last quarter. So our interest cost is decreased, decline is on declining phase.
Shreyans Surana
Because it will decline further once we receive the insurance payment also.
Pranav Shrimal
Okay, that will be used to prepay the borrowings. Correct. And one last question sir. Coming in the coming time, where do you see the major growth coming from? From which state are you seeing the growth coming from?
Shreyans Surana
See as a study, as I said in terms of growth we are seeing a growth in SSG in both the core states and the focus states that I have mentioned you. But as a strategy we are opening 70% stores in the core geography which is a strong fourth for us. And 30% we are opening in the focus territories. So majorly in focus we are focusing more on UP as a state and in the core Bengal, Assam and Odisha.
Pranav Shrimal
Got it sir. That’s it for myself. I’ll join over to you. Thank you so much.
Operator
Ladies and gentlemen. In order to ensure that the management is able to address questions from all the participants in the conference please restrict your questions to two per participants. If you have any follow up questions please rejoin the queue. Next question is from the line of Palash Kawali from Nuama Wealth. Please go ahead.
Palash Kawale
Hi sir. Thank you for the opportunity. So my first question is around warehouse capex. So say if you add 1 lakh square foot of store area what kind of warehouse would you would you be adding?
Shreyans Surana
For that is one like. Can you come again with your question? I didn’t get your question. Actually
Palash Kawale
I just wanted to know after how many stores do you need to add a new warehouse or the ratio of area stores to warehouse?
Shreyans Surana
On average we consider a 15% to 20% of the rental area should be the warehouse area.
Palash Kawale
Okay. Okay. Answer What? So what would be your head office call as a percent of total total employee cost and if I look at total operating cost, what. What. What percent of that would be fixed and what percent would be evaluated
Shreyans Surana
In terms of ho cost? For the first time of last year it was around 5.08 because. Which is increased to 5.93. As I’ve already mentioned, it has increased because majorly the spending has been done on the expansion side on warehouse office space and the manpower that we have hired for all the divisions. In terms of fixed cost, I think rentals are majorly a fixed cost. And employee cost, you can say it’s a fixed cost. So these two costs are generally fixed and all other costs are variable.
Palash Kawale
Okay. Okay. Yeah, so that’s it from my side. I’ll come back in the queue. Thank you.
Operator
Thank you. Next question is from the line of Tanmay from Boi Mutual Fund. Please go ahead.
Tanmay Gupta
Yeah. Hi sir, thank you for the opportunity. Sir, wanted to understand the reason behind decline in GM and GM and a mix over the quarters a yoy basis and even in sequential basis.
Shreyans Surana
I think GM mix on an average for last few years have been between this 13 to 15% sweet spot. So generally whenever for this year, for example, this year we believe the trend is showing that we can address more stock on the Apple site. So we fill the store with more inventory on the Apple side because of the better margins. As a result, the percentage of sale mix is 8713 which was 84 and 16 last year. So it’s a gap of 2 to 3% which is always for the last few years. It ranges within that range only.
Tanmay Gupta
But sir, do you think like when we keep a low skus of general merchandise. So maybe that could be the reason people, new people, customers might not be attracting in the store or you know, because you know, a proper mix of like even if 2, 3% if we keep more may change the game or how you look at this.
Shreyans Surana
So GM in general always because we tell ourselves as a family store. So the purpose of keeping the GM was at K in smaller tier 2, tier 3 cities there there’s no organized player particularly in this category. And we wanted to get the entire needs of a family. And majorly GM stands on the third. Generally it’s on the third floor of the second floor which is efficiency. While these are some lowest efficiency flow and they are the, I will say putfault driver for us. So though we focus more on garments, but they are like a football driver for us. So I don’t think as a category it replaces the sale of apparels. It’s just that the September to December was a festive quarter for us. And in the festive period people buy more garments. So as a strategy we put a lot of effort on the garment side. As a result, we saw better sales in April as a result, the sale mix changes from 16% to 13%. On the GM side,
Tanmay Gupta
The transaction value of apparels and general merchandise have a major Gap Is my understanding, right?
Shreyans Surana
No. So there’s no major gap if I’m understanding your question. Well, there’s no major gap between that. General Magenta is just a football driver for us in whichever the focus because we always tell ourselves as a value fashion retailer. So general merchandise is just a football driver for us in which we try to give lot of things to the tier 2, tier 3 people where they don’t get this general merchandise section in the organized level. So in GM we keep cosmetics imitation jewelry, plastic bottle utensils, blankets, shoes, etc.
Tanmay Gupta
And like if you, if you can help me in understanding like what is the average bill value of apparels and average build value of general merchandise?
Shreyans Surana
It’s, it’s in the same range. But in terms of ASP, if you say, I think the average ASP of the company is around 310, 305 right now. So you can say that the Apple is around 380 to 400. Whereas general merchandise is around maybe on an average ASP level, maybe around 200 or 150, 200 level. On an average, the average ASP becomes standard too.
Tanmay Gupta
Okay, so general merchandise ASP is below then apparel. Okay, Understood.
Shreyans Surana
Correct, Correct, Correct.
Tanmay Gupta
Okay. And second question I have is like there’s a continuation shift of unorganized players to organized stores. So do you see that SSSD and value fashion companies are doing well? So do you see 10%, 10 to 15% SSG continuation for the next year Also for us
Shreyans Surana
I think the healthy SSG is around 10% which I believe that the tailwind is in the favor of us right now all the value retailers. So I think, I hope and I also see that in future also we are able to grow because what we are seeing is that right now with the Internet penetration and the Gen Z coming in, the people want more comfort and they want that AC environment, dry room facilities which are not present in the unorganized sector. So people are moving from unorganized to the organized. They want better merchandise, better designs. So I think yeah, we can expect a good, I will say growth for the value patient retailer. And secondly even if you see the all the developed nations also though all the countries have got their value fashion retailers. Maybe it’s Primark, Zara or hm. The India is the only country which doesn’t have a single value fashion retailer. And because of the culture diversities, India can accommodate many value, many I will say value fashion retailers that way.
Tanmay Gupta
So 10, 15% SSD can be made in next year as well. Understood?
Shreyans Surana
10% can be achieved.
Tanmay Gupta
And lastly, on the private label front, so sequentially I’ve seen there is some. Decline from the last three quarters in private label contribution. So what is the factor leading to this? Or is this kind of seasonal thing?
Nitin Singhania
Pardon? Can you come again sir?
Tanmay Gupta
Sir, my point is the private label contribution to sales is declining on a sequential basis. So is that because of seasonal factor or something else we are missing out?
Shreyans Surana
So it’s on a seasonal factor only because if you see nine months now it has increased from 37 to 44%.
Tanmay Gupta
So first and second quarter the private label contribution remains high. Is that so?
Shreyans Surana
So basically what happens that in Q3 generally there’s a shift of festival and along with that it’s a winter season. So winter season is not. In terms of the winter articles we don’t have a private labels in winter that much. So it’s majorly other labels. And winter has a higher share in month of November and December as a result for the Q3 it looks on a lower side but for the entire nine months it is on the higher side.
Tanmay Gupta
Understood sir. Thanks a lot.
Operator
Thank you. Next question is from the line of Bhavik Narang from Western Research. Please go ahead.
Bhavik Narang
Thank you. But my all my questions are answered.
Operator
Thank you. Next question is from the line of Chintan Shah from GM Financial family office. Please go ahead.
Chintan Shah
Hi. Thank you for the opportunity. So two questions. So one is even if we look at the SSSG on say 9 month basis which is around 10% or it seems to be lower than what you know, other peers have reported. So just wanted to get a sense from you. Is this on back of the regional presence that we have since we’re more eccentric or is the competitive intensity higher? So what could be the reasons for a lower SSD versus peers?
Shreyans Surana
So I will just say that there are a lot of things which comes when you are talking about ssg. So in terms of peer, when you say they only maybe one of our peer who is achieving higher SSG than 10% and that may be on the account of their geographical presence, maybe the maturity of the store network that they have, local festival and events, inventory density etc. So I think on an average anything in 10% is a very good SSG from the retail per se. In my experience of last more than 12 years in this retail category, I think 10% is a very good SSG. And apart from that I think again as I said totally depends on the geographical presence of the stores that they have.
Chintan Shah
Okay, understood. So next question is suppose we do this SSSG of 10% server next. Two to three years. What is the sort of potential in terms of EBITDA margins that we can reach?
Shreyans Surana
So if you achieve I will just give an example to everyone in the call. If you are achieving 4 and a half percent to 5% SSG for a store technically you are able to I think take care of the entire cost which are, which is, which has increased because of the inflationary pressure maybe on the employee cost and anything of that gives you a higher ebitda. So typically in our scenario when a store becomes mature it gives us a ebitda of around 14 to 16% at pre index levels. And even in our this year also if you see on the L2L side we have from last year 0.8% has been increased in the EBITDA level on the L2L category.
Chintan Shah
Okay, got it. Understood. And just one more follow up here is any sort of around expansion etc or any other corporate overheads that we plan to incur over next two, three years.
Shreyans Surana
I think as of now I don’t think a big plan. Yeah but there are a lot of things this year we are planning. This is a year of technology for us that we have named this this coming financial year. So there will be a lot of tech play that we are going to do in which you are working a lot on different, different models and on the inventory side on the ERP side we should like to start for so which can help us to sustain the future growth. So we are working on that. So on investing in technology will be the one part where we will be open to the expenditure.
Chintan Shah
Okay, so any sort of number you would like to give, I mean how much we’re looking to spend
Shreyans Surana
As of now every year what we as a capex in terms of Capex as a company we plan around 15 to 20 crores always on the development side, sometimes on the Capex infra side, sometimes on the technology side. So this year I think 15 to 20 crores will be going in the on the tech side.
Chintan Shah
Okay, got it. Understood. And she has this last one question from my side. So if you look at a presence and now we are continue to add stores say in the range of say 25% CAGR. So to reduce the you know indeed the variability or the seasonality you think it’s more prudent to expand more in north centric regions away from say eastern regions so that we reduce the volatility in the financials or you think that you’ll continue to focus on. So just wanted to understand your thought process.
Shreyans Surana
So see when we say north nine terms of north. Right now, our focus is on up and up Bihar and Jakarta is a focus state. So we’ll be focusing on that. But while saying that, what I see or whether all the retailers who have a major presence either in the north, India or central or. East India, the quarter three plays a very important role. So if you see the quarter three numbers for all the Itras you will see it’s on a very high side. Almost 50, 55% of the EBITDA comes from quarter three itself. So. Yeah, but as a company we are moving towards up. So I think that will again create, I would say in terms of number the dependency on the eastern part, maybe on the Bengal and Visa will reduce. But while saying that the quarter three September, December will always be a bigger number for the north or the central or the east or the States because all the festival falls in that particular months only.
Chintan Shah
Okay, got it. Understood. And just one last question. In terms of competitive intensity, is there any change? Has it increased or in the same. Any thoughts on that?
Shreyans Surana
It’s still the same. I think there are few players only above 100 store category in the value, fashion, retail and I think the market is big enough for everyone. As I already said, there’s a huge shift from unorganized to organized going on and everyone is doing good. So when every. Everyone is doing good, that’s a very good for the industry. What I believe and I see that coming two, three years, I don’t see any problem in manufacturing industry.
Chintan Shah
Okay. Okay, got it. Understood. Thank you so much for answering my question.
Shreyans Surana
Thank you.
Operator
Thank you. Next question is from the line of Natic from NV Alpha fund. Please proceed.
Naitik Mutha
Hi sir, thanks for taking my question. My first question is, you know you mentioned in the opening remarks that this year you might end up with around 95 to say 100 crores of free index EBITDA. So does that mean we would be bad positive for the last quarter?
Shreyans Surana
Yeah. So we expect a good Q4 because of good EID. Because EID coming in the march itself. So we expect a positive pattern in Q4 and in terms of EBITDA. Yeah, our target is to reach between 95 to 98 crores of EBITDA for this financial year. 25.
Naitik Mutha
Right answer. My second question is if you could just give us a sense on the capex that you might have spent in increasing the, you know, the corporate office space or warehouse.
Nitin Singhania
So we have
Naitik Mutha
Store capex,
Nitin Singhania
We have invested around so 15 cr in the warehouse and approximately 40 crores in the storefronts.
Naitik Mutha
So for nine months we have spent around 65 crores. 15 and 40. The split is 15 and 40. 55 crores. Sorry,
Nitin Singhania
55. Yeah, 55.
Naitik Mutha
Got it. My next question is what sort of sales does our mature stores do? You know per square feet or per store? The 133 stores that are mature right now.
Nitin Singhania
So at the company level, we have 18. 800 per square feet sales at annualized sale for the full year Visa vis last year it was 8,000 and for the like to like and like to like stores, it is approximately 9,000 square feet and it will be 7, 500 to 8,000 square feet for the other stores.
Naitik Mutha
Right sir, that is from my side. Thank you.
Operator
Thank you. Next question is from the line of Arman from Blue Sky Capital. Please go ahead.
Arman
Yeah, thanks for the opportunity. Just want to stress a bit on the explanation that in Q3 FY25 our revenue did rise, right? Comparatively yoy although that West Bengal does contribute a major percentage of our stores or mature stores. But yet revenue did rise and comparatively profit did not rise. So that can we conclude that in Q3 comparatively new stores have contributed to the revenue because our mature of the comparatively of 133 mature stores, I guess around 45% are stamped in West Bengal. So that’s why our mature stores did not contribute well due to the season. And that’s why new stores contributed and hence our profitability reduced. Is that the first reason? Because if I, if I say our average, average transaction value, that being reduced Q3 comparatively yoy that also reduced. So first question is mind that second of the total stores which we plan to open like Focus, you said about UP and Bihar and one of the retailer that you also told that performed well, that is their core area of UP and Bihar where they have similarly told a very good comparatively sales to sales growth in which we are also focusing. So what is the reason why we are lagging behind and what is the explanation for total number of stores opening in which state comparatively? If you see focus market or core market
Shreyans Surana
Coming to your first question, I think it’s a balance of both. As you rightly said that the Q3 we opened around 18 stores and I think when for this entire year we opened 43 stores. As a result the cost element was higher which also resulted in a lower EBITDA for Q3 because of the newer stores. Coming to the second question, see in terms of the peer comparison that we have. So I will just say that as I said, it depends on the geographical location, the inventory density, what we see in terms of core and focused states. A core is a geography where we are very strongly present. So we would continue to grow that thing. But again by saying that we have to build stores in focus territory also where we see a lot of potential. Now UP Bihar Jhakan market, we see a lot of potential. So though they may. Maybe they are growing at a higher ssg. But as I said over my years what I have learned 8 to 10% is the healthy SSG. So I am focusing on my numbers. If I am able to achieve 8 to 10% SSG on an average, as I said, the rest of other states other than Bengal, Assam, Tripura for the first time has given me SSG of around 9.83% which will give me a healthy EBITDA on those stores also. So I think we can also open the stores as the market is big enough for everyone.
Arman
Okay, yeah, thanks. Thanks for that answer. Just my last question is that if I just see total number of bills raised, that also signifies that we had a good footfall but that could not contribute more to an average transaction value because probably new stores open so people try sometimes a small stuff and that’s our average transaction value comes down. So does that mean that after this mature storage we are healthy? Seeing our EBITDA margin from here onward just improving because our mature are already stores. We have opened our almost from 133 to I guess 200 around. So coming FY26 will see continuously healthy trajectory for the EBITDA margin.
Shreyans Surana
Yeah, you can say so because as you rightly said that because of the newer stores and because we wanted to focus more on the increasing the number of bills and increasing the number of customers in the newer stores. So aggressive pricing and because sometimes customers start with the low pricing articles. So mix of both has led to a lower asp. But next year, as I have already mentioned that the product the store life cycle moves like this only once it reaches second to third year. It is in the EBITDA 14 to 16%. And as we have opened a lot of stores this year, so it will it is going to give healthy EBITDA in the coming quarters from the next financial year.
Arman
Okay, thanks a lot. Thanks a lot for your answer.
Operator
Thank you. Next question is from the line of Palash Kawali from Nuama Wealth. Please go ahead.
Palash Kawale
Thank you for the opportunity. Again,
Operator
Mr. Palash, your voice is not audible.
Palash Kawale
Hope I’m audible now.
Operator
Yes, please proceed.
Palash Kawale
Yeah, so sir, again on the comparison with the peer, one of the peer. So they alluded, so they have alluded to lower markups which has led to very high throughputs and footfalls for them. So have you also experimented with that kind of strategy or any insights that you could share on that?
Shreyans Surana
I think whatever I have read the results of all the peers as of now for the nine months it has not been a very high gross margin impact on the numbers. Only a percent difference between all of us together in the delivered margin section. In terms of I will not say that we have done anything what our peers are doing because as I told Nagi, all the guidance that we. Are saying in terms of revenue growth that we want to achieve, we are able to achieve that. Yeah. As a. As we are entering into a new territory in the focus stage and all. So we are going with some aggressive pricing that is keeping low article pricing articles in the stores which is helping us to build a higher footfall and higher number of bills. As I said right now only. So that is the study that we are applying. So to attract a lot of customers in the focus states we have, we are keeping a lot of inventory at a entry price point levels just to make them come to our stores, see our stores, feel our store and maybe in the repetition sales, as I said our repetition customer sales have been 72%. It has been consistent for maybe more than a year now. So we just, we just create that room for by investing in more on the anti price point so that we can bring more footfall of customers to our stores.
Palash Kawale
Yes, thank you for that. And sir, out of 45 to 50 stores or 100 stores that you would be adding, adding in next two years, how many of those you expect to add in UP or Bihar? UP and we are combined
Shreyans Surana
Not particularly UP there but as a strategy for the coming at least for the next one year. What we see 70 of the stores are going to open in the core states. For us core states is a combination of Bihar, Bengal, Assam and Odisha and 30% will be in the rest of the other states which includes up, Jharkhand and other states.
Palash Kawale
Okay sir, thank you. Thank you for your answers. And that’s it from our side and all the best for the future.
Shreyans Surana
Thank you.
Operator
Thank you. Next question is from the line of Sriansji from Swan Investments. Please go ahead.
Shreyans Jain
Hello.
Shreyans Surana
Yeah. Hello.
Shreyans Jain
Yeah sir, my first question is sir, could you explain to us our call your cost structure on a store basis store level. So if I have to understand when I’m just trying to understand your employee cost and your OPEX per square feet. So Q2 Q3 of last year we were at 50 rupees and 55 for employee cost. Whereas my understanding is that sir employee cost for a retail store is anywhere between 60 to 75 rupees a square feet. So how are we so low sir versus the industry? And if I do a similar comparison for the other OPEX bit, you know we are at about 100 bucks versus industry at about 120, 130. So how are we so low versus the industry sir?
Nitin Singhania
So coming to rental because we are majorly in tier 2, tier 3 and tier 4 cities to where the rentals are low, so hence the in comparison with the competitors, it seems to be on the lower side. But taking rental and other cost together, the. The average per square feet cost is 150 around. So for his at store level and at company level it is around so 190 per square feet which is in at par with the peers also.
Shreyans Surana
And value per
Shreyans Jain
Square feet sir,
Nitin Singhania
It’s approximately 50 to 55
Shreyans Surana
For the quarter and for the nine months it is around 48. Yeah
Shreyans Jain
No sir. So average sir on an industry Everybody is at 50 to 55.
Shreyans Surana
Ours is 48. So 7 hours average is 48. As he rightly said that our cost per square feet is around 190 which is almost similar with the peers only so it’s not at a lower level.
Shreyans Jain
Last year this was at about 150 and now we are at 190. So what was driving this 150 last year sir?
Nitin Singhania
So the rental last year was around so 46, 44 to 46 per square feet which has increased to 50 to 55. Because in tier one and metro we have opened around so 30% of our stores and due to that the our rental per square feet has increased. And secondly we have invested in manpower and that has also led to the increase in the cost per square feet in employee cost.
Shreyans Jain
So what should be your steady state employee cost and your rental per square foot sir? Or if I have to understand your whole opex.
Shreyans Surana
So if I say at the store level, if you see only from the store level perspective for the first nine months it is around 122 per square feet for the last year and it is the three cores that we have taken. Employee rental, power and fuel. And with the inflation and everything going in it increased to 133 rupees per square feet. So there is 11 rupees increase in nine months on this three cost. And I think the only cause the only thing that increases in the employee side at the store level is the any change by the government on the minimum wages which we increase the increase in the store level. So that is the increase which is typically around 8 to 9% on the employee side. So that is the growth typically around employee cost and on the rental side is a 5% escalation every year. And again power and fuel depending on the agency or the company it’s around 76 to 7% inflation every year that we have seen.
Shreyans Jain
Okay, okay. And sir you mentioned that we spent about 20 odd crores additional on some corporate overhead. So can you explain that? So sorry I missed that point. So what is that line item and where have we spent that?
Shreyans Surana
So basically considering the future growth expect we have double, double capacity of warehouse, we have increased the office space and we have increased a huge number of manpowers at the back end, operation, procurement, technology level and supply chain. So. These three are the cost elements majorly on which, on the counter which it has increased if I take tell you in terms of absolute value. So employee cost has increased by around 8 crores this year. Rental has increased around 3 crores. So 11 crore out of 20 crores because of employee and rental majority for this nine months.
Shreyans Jain
Okay. And sir, so what should we assume as the steady state OPEX now 60, 60 crores of OPEX should continue for us going forward or do you think we can go back to the 40, 45 crores that we used to do last year? We can see that next year.
Shreyans Surana
No, So I see when you grow typically last year we did a. I will say that the back end expenses of the corporate overhead should be seen as the percentage of sale. So last year it was around 5.1 because this year we have invested lot of, lot of, a lot of things at the recurring level. So this year it has increased from 5.1 to around 6%. And in coming quarters again because we have taken a lot of people this year and with the larger growth trajectory that we are seeing ahead and the stores that we are opening, we expect this cost again to get reduced back to the same level of 5.1% maybe in coming six quarters.
Shreyans Jain
Okay, and so this last question, you said we spent something on technology as well. Now sir, how do you expect this, these spends to, I mean where should we see the improvement? Should it come on the OPEX bit, should it come on the inventory turn side or should come on the gross margin? So what I’m just trying to understand when you’re spending this kind of money on technology, where should this benefit be visible on your balance sheet?
Shreyans Surana
So I will say when we are investing it will be more on the capital side. But in terms of efficiency, as you rightly said, it will be largely on the inventory side. So whatever we invest, for example, I’ve just given example that we are investing on warehousing which will help us to reduce the lead time to the store which in turn will help us to have a higher sales throughput in the stores. So the higher will be the churning, higher will be the margin earned. Again on the inventory side, we are doing a lot of things on the inventory side in which as you, as you say, as you see right now also we have reduced our inventory by 200 rupees square feet, whereas our sale per square feet has increased by almost 800 rupees from last year. So from last year from 8000 we have reached 1800. By reducing the inventory by 200 square feet. So we are trying to reduce the tailwind tail tail of inventory. I will say that way. So the there will be higher efficiency in the form of gross margin, higher efficiency in terms of increasing sale per square feet, which again will lead to a majorly will be coming from the L2L growth also that you can see, which in turn will give you a higher profitability. Apart from that, if you go for the ERP and solution that we are planning to do, which will it will create a greater, I will say discipline around all the functions. It will create lot of. Processes which will again help in improving the efficiency because there will be a lot of sops and process to be followed which I generally think it’s missing in a lot of retail companies which we would like to improvise on.
Shreyans Jain
Okay, all right, thank you and all the best.
Shreyans Surana
Thank you so much.
Operator
Thank you. Next question is from the line of Ayush Sabu from Choice Equity Broking Private Limited. Please go ahead.
Aayush Saboo
Yeah, could you please just give a guidance regarding the total capex that you will incur for the next require FY25 and 26. You know, considering what the guidance you already gave for the technological developments, what would be a total capex figure that we could work with?
Shreyans Surana
I think typically we will be opening as we said we have, we will be opening anything between 40 to 50 stores and on an average 1 crore to 1.25 crore is a spend on the store depending on the location that is the store gets opened around. So 40 to 50 stores will be the strategy for opening and as I said the capex will be as I said you the capex amount also. So we can expect anything between that between 60 to 65 on that side and apart from that, if there’s any capex, any other capex expansion going in the warehouse or the intra side that will be the additional cost on that.
Aayush Saboo
So additional will be around 15 to 20 crores like you mentioned, right?
Shreyans Surana
Yeah, yeah, yeah.
Aayush Saboo
Thank you.
Operator
Thank you. Next question is from the line of Tanish Tolani from who is an individual investor. Please go ahead.
Tanish Tolani
All right. Am I audible?
Operator
Yes, please go ahead.
Tanish Tolani
Thanks for taking my question. My first question is regarding guidance for roe. Hello.
Nitin Singhania
So roe it will be, it will be around. So last year it will be floating. With respect to last year itself it will be 10% to 11% only
Tanish Tolani
And what’s. And how many stores in Q4.
Shreyans Surana
So as I said for the entire year we’ll be opening anything between 40 to 50 stores, 43 stores have been open, so maybe seven to 10 stores.
Tanish Tolani
And E commerce side are you looking forward E commerce.
Shreyans Surana
So see in terms of E commerce our strategy is very pretty clear. We are working on two walls. One is on the only site. What we created is that in terms of omni at the store anyone goes for shopping and if he doesn’t find any size or color that can get delivered to his home, rather we have started it last year and we are seeing a good traction of revenue coming from. That on the Omni side, at the store level, on the E Comm side, we are still in a stage where we are planning to create an ecosystem, but it will be largely around our own website. Because what we have seen is that even though if you are going to quick commerce or to the E. Comm on the marketplaces, the commission cost is very high and with the margins that we have, it will not be a profitable model for us. And we want to build a profitable sustainable model. So E. Com will be there, but it will be largely around our own website to which we are going to. It will be just like a convenience for the customer whether they can buy from stores or maybe they can buy on the Omnichannel and or maybe they can back on the Ecom. But E Com will not be the focus area.
Tanish Tolani
Okay. Okay.
Operator
Mr. Tanish, does that answer your questions?
Tanish Tolani
Yes. Yes,
Operator
Thank you. Next question is from the line of Arman from Blue Sky Capital. Please proceed.
Arman
Yeah, thanks again. Just I want to have a general understanding because From October to 10 January I guess we closed three stores. One in Jharkhand, one in APN, one in Chhattisgarh. So what the strategy company follows in deciding where to open any store and what dynamics do you see? Also if our focus area still be on the core areas like West Bengal, where we’ll open more so will that mean that our renting cost will increase? Because already we have established so many stores over there and new area finding would not be that much lucrative as it has been in parts. Thanks.
Shreyans Surana
No, I don’t think so. That way in terms of closing the stores, a simple study that we follow when while we’re selecting a store, we have a lot of processes that we follow from business side going over there, creating a scorecard approach in which they see the how the catchment is, how many universities and what is the size of the population of the catchment over there. Lot of things. And then they create a business plan. Generally stores are 95% stores are getting closed because of the wrong estimation of revenue. And I think which will be the case when we are opening stores. But for us, if you see from inception till 31st December 2024, we have shut down around 27 stores and we open around 200 stores. So typically it has been 11% closer rate for last 11 years. So which is pretty good, there will be some hits and there will be some misses. But again the reason behind such a good rate again is the cluster based approach that we have followed and which help us to know which are the PIN codes where we can open stores. We know our catchment better, we know our product assortment better. As a result, the closer are lesser. In terms of future expansion, why we are creating this focus states because once you reach the maturity at the core state, you require future source to develop. Generally between five to six years when you spend into a territory you rather lesser than four to six years, you tend to understand the territory very well. And that territory converts from focus to core. So going forward, as I said up will be the target states where we will be opening more stores in the focus area and along with that the core. Because in crore we have such a good expertise. So I think still there’s a lot of area where we haven’t opened the store. So till time we reach that maturity level, we will be opening the stores over there also.
Arman
Okay, okay. And my last question is like what is our marketing strategy over there? Like just for example big players like I could see on YouTube many of their videos or what’s. What’s our specific strategy? Because we are regionally specific. Definitely we would have some regional specific strategies. But what’s the strategy companies follows to increase the look and feel and awareness for the company stores? Is it the organically even just word of mouth or company spends? What kind of, what kind of strategy does company follows?
Shreyans Surana
So company spends according to the area. For example right now we are focusing more on up and I’ve told in last call also but if you go to YouTube and if you just type Kisa Lal Style bazaar song. So we just launched that song in the month of Diwali chat and that song has got more than 34 lakhs views as of now. And that song is about Style Bazaar collaborating with Kisari Lal as a celebrity. And in the song, the entire the script they are showing Style Bazaar stores, they are showing the products of the style bazaar. So we try to work more on the regional celebrity side, more on our influencer activities which help us to connect with the local people. Because larger or 90% of the audience whom we want to target are more of those people who are following the local celebrities. So this kind of advertisement is done by us in state, in every state. In terms of total spending, we generally spend around 1.5 to 1.7% as a total spend at the company level. Which again changes between state to state.
Arman
Okay, thanks a lot. Thank you.
Operator
Thank you. Next question is from the line of Ayush Sabu from Choice Equity Broking Private limited. Please go ahead.
Aayush Saboo
What will be the trend of you know, the debt and creditors did as we go ahead, I mean as we increase the store expansion, would you see it improving? Would you see the credit is coming down or below the 7075 level, or would it sustain
Nitin Singhania
So at present, 8 is 72. 2 days visa vis 83 days last year. So it is on the declining trend and we hope to maintain between 60 to 75 days in coming years also.
Aayush Saboo
Thank you.
Operator
Thank you. Next question is from the line of Kushal Goenka, an individual investor. Please proceed.
Kushal Goenka
Yeah. Hi. Thank you, sir. So my first question was when can we expect the fire insurance money to come in?
Nitin Singhania
We are expecting that to be closed by this March and the figure will be closed by this March and interim relief or full payment will be released within this period only.
Kushal Goenka
Okay. Okay. Thank you sir. And my second question was since like January is about to end, can you tell what is the trend for Q4? How is it panning out compared to last year? Quarter four?
Shreyans Surana
See, I cannot comment on the Q4. But yeah, as I already said that we are expecting a good momentum that has started in January itself and we expect a good numbers with the ETH coming in March.
Kushal Goenka
Okay, thank you sir. And so last question, sir. Sir, like any new state are you looking for in the focus state, like as you said, like you are looking to expand more in up but any new state where you are not currently present, are you looking for that in like Q4 or next year? FY26
Shreyans Surana
As of now? No, we are not looking at any other states because I think there is a lot of potential. And as a strategy, as I said, we have the strategy to go in a cluster so we go deeper into any state whether we open stores. So the strategy will remain same. And up. Jharkhand, Bihar, Bengal, Assam, Odisha will be the states where we will be opening more and more states going forward also.
Kushal Goenka
Okay, but as I can see, like I guess in Tripura you have two store, Arunachal one store and Andhra also you have like five stores. So are you planning to expand in these states more?
Shreyans Surana
So as a. In terms of Tripura, Tripura is a very small state. I think maybe one or two stores can be added more over there as of now. So as a strategy we are not going on that particular stage. Again, Arunachal Pradesh was just an extension to the Assam because it is near to Assam and we got a very good location. So we opened. And the taste and preference is also similar to Assam. So we took a decision over there. Andhra Pradesh is again an extension to Odisha. So it’s not a state specific call that we have taken because of some cities falls into the territory. So that’s why the state changes. It’s majorly a border area of Odisha where we open stores which falls under Andhra Pradesh. So as a strategy it’s only Odisha.
Kushal Goenka
Okay. Okay. Thank you.
Shreyans Surana
Thank you.
Operator
Thank you, ladies and gentlemen. That was the last question for. I would now like to hand the conference over to Mr. Sriyanshurana for the closing comments.
Shreyans Surana
Thank you guys. Thank you for attending this call and we hope to give a good numbers in the next coming quarters. Thank you so much.
Operator
Thank you. On behalf of Bazaar Style Retail Ltd. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.